Why Is Amarin Down Today?
Amarin (NAS: AMRN) generated a lot of investor excitement this summer when its hypertriglyceridemia drug Vascepa was approved by the FDA. Its main competitor in this therapeutic area is GlaxoSmithKline's (NYS: GSK) Lovaza.
While the stock is up significantly year to date, its share price took a hit today on news that the FDA still hasn't decided whether Vascepa qualifies as a New Chemical Entity, or NCE. Drugs that gain NCE status enjoy five years of exclusivity on the market, while those that don't only get three years. Nevertheless, in both cases Amarin will have to rely on its intellectual property to shield Vascepa from generic competition beyond these time frames.
In the following video, health care analysts Max Macaluso and David Williamson expand on these points and discuss Amarin's drop today.
The biotech space is generally very risky for investors, but one of the best ways to absorb losses is to balance your portfolio with stable stocks that can help you build long-term wealth. After all, we would all like to retire well. In our free report "3 Stocks That Will Help You Retire Rich," we reveal companies that you can integrate into your wealth-building strategies. Grab your copy today by clicking here -- it's totally free.
The article Why Is Amarin Down Today? originally appeared on Fool.com.Max Macaluso has no positions in the stocks mentioned above. David Williamson owns shares of Amarin, but he holds no other position in any company mentioned. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.